(Yicai Global) May 17 -- The recent controversy about smartphone maker Huawei Technologies Co's newly-launched P10 smart phones allegedly use different kinds of flash memory in different mobile handsets has forced Huawei's senior consumer business group and mobile phone product managers to hold a press conference for the first time to face the media. Huawei executives stressed that the company pursues integrity although users and industry experts suggest that not all of Huawei's mobile phones adopt the high-standard UFS flash memory products.
"If there is a little bit of dishonesty, I will be fired by my boss before anyone else takes any action," said Yu Chengdong from Huawei's consumer business group yesterday. Following the suggested "flash memory scandal," Huawei conducted an in-depth investigation concerning the mobile phones' quality, difference in price for different flash memory products and other issues, he pointed out in the presence of several Huawei mobile phone product managers during the press conference.
Some users and reviewers recently suggested that not all of Huawei's mobile phone P10 handsets adopt the high-standard UFS flash memory products, and some of P10 handsets use the EMMC flash memory products.
"Our internal data show that the cost difference of different memory products is only USD0.4 or USD0.5 at most. People said that we do so [adopt EMCC flash memory products] to save costs, which makes no sense at all," Yu claimed. "I ask our team to publicize the specifications of our products as much as possible in the future, including the types of metal and glass we use," he said.
Huawei reconsidered the whole process from within, and gave priority to solving the issue of supply shortage, he added.
A product manager of Huawei told Yicai Global that Samsung is Huawei's largest mobile phone memory product provider, adding that any electronic components, such as CPU, memory and screen, have suffered supply shortage since the second half of 2016. Therefore, solving the supply problem for core components and parts has become Huawei's top priority.
Huawei has focused on the middle- and high-end market since more than five years ago when Yu took charge of the consumer business. Although Huawei has succeeded in transforming from a telecom operator to an overall market operator, it still faces challenges in terms of profitability, supply chain and other issues.
He Gang, president of Huawei terminal mobile phone product line, said that with the increasing number of Huawei terminal mobile phones, they need to rethink how to strengthen the front-end cooperation with suppliers.
The recent data released by Huawei shows that Huawei provided 34.5 million smartphones to the global market in the first quarter of 2017, a year-on-year increase of 21.6 percent. Its global market share increased to 9.8 percent, ranking third in the world.